If you have read our beginner’s guide to NEM Cryptocurrency,
If you have read our beginner’s guide to NEM Cryptocurrency, you would have a general idea of how it works.
However, to take an informed decision about a certain cryptocurrency in a crowded crypto sector where new coins are being launched right, left and center, it is not enough to just know how it works.
It is also imperative to know the pros and cons of it so as to be able to take a call about whether you should invest in it or not.
Therefore, in this article, we give you a comprehensive list of the main pros and cons of the NEM Cryptocurrency that you should keep abreast of.
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Pros of NEM Cryptocurrency
1. Proven Use Cases
The NEM Cryptocurrency is far form being just another cryptocurrency in the market. It has proven use cases that go beyond just the crypto world.
Many leading banking institutions make use of NEM to facilitate their internal operations. While most banking institutions use blockchain smart contracts anyway, NEM allows them to make use of a private blockchain Mijin.
In fact, Mijin is being tested by over a hundred Japanese banks and stands to be implemented in a large chunk of them. This adoptability adds to the value of NEM.
2. NEM Works Even Beyond The Fintech Space
The use cases of NEM are so numerous that they extend even beyond fintech.
For example, those who use the enterprise version of the NEM blockchain are able to store various kinds of important documents safely, securely and privately on the chain.
NEM can also be used to send messages, encrypted if required. The Namespaces tool can be used to register a name and run on-chain businesses using them.
Asset creation is made possible with the Mosaics tool and notarization solutions are easily accessible through the Apostille tool.
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3. Secure Mining Model
We know there are different kinds of consensus protocols used in blockchain. Of them, NEM uses a very secure one: the Proof of Importance.
The Proof of Importance consensus algorithm guards against the 51% attack by breaking down emphasis between volume and collateral.
Cons of NEM
1. Lack of Clarity
We have not seen a lot of clarity on the part of the blockchain developers as to how we must differentiation is to exist between the Mijin fork and the original NEM blockchain. Moreover, a great deal also remains unsaid on the legal front. All these create undue complications for the NEM project.
2. Lack of Regular Updates
In the ever-changing world of technology, it is imperative to keep upgrades flowing. Having an active team of developers ensures that a project is up and running and constantly able to create an impact in the minds of existing as well as potential users. NEM has not rolled out too many of them of late, affecting their popularity.
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